Bigger Rents for Small Studio Apartments

Monthly rents for Manhattan’s tiny studio apartments have taken big jump in the last year, a sign more young people are signing leases to live on their own.

As widespread layoffs subside and the economy slowly heals, more consumers feel secure enough to ditch the roommate or move out of mom and dad’s basement. That’s giving landlords enough confidence to raise rents, ending the price chopping and freebies that followed the financial crisis.

Prices for one-bedroom units with and without doormen jumped more than 6.2% from a year ago, while two-bedrooms without a doorman climbed 4.9% to an average $3,853. Doorman units saw an even bigger jump — 5.1% to an eye popping $5,361 per month.

Even with increased prices, there are fewer apartments available. Studio inventory fell 4.3% in March. Manhattan’s supply of doorman units fell 3.6%, while non-doorman units slipped less than 1%.

New York City has long boasted one of the nation’s tightest vacancy rates: Just 3.2% of units were empty as of the fourth quarter, well below the 6.6% national rate, according to the latest data from Reis Inc.

To be sure, price gains could be halted and vacancy could rise should job creation stall. But most industry watchers expect additional price hikes during the busy summer months when a fresh rental crowd moves to the Big Apple.

“Renters looking to avoid paying higher summer rental prices should begin looking immediately as the few deals left are likely to get swept up fast,” the Real Estate Group wrote in the report, based on data taken from more than 10,000 listings below 155th Street and priced under $10,000.

Manhattan’s priciest apartments can be found in TriBeCa, while Harlem continues to have the cheapest. Still, rents for Harlem’s non-doorman studios have spiked nearly 10% from February.

The Upper East Side’s two-bedroom doorman units saw prices fall nearly 10%. Prices for two bedrooms also fell on the Upper West Side and in Harlem. ”Solo renters should consider pairing up and taking advantage of some of the discounts in larger format apartments,” the report suggested.